On December 22, 2018, the US government began a shutdown as a result of the budget for the next fiscal year remaining unapproved, which occurred this year due to disagreement over Trump’s border wall: a project estimated to cost anywhere from $12 billion to $70 billion. This past month’s partial government shutdown is the longest in US history. It’s economic effects are wide-reaching, including a pronounced economic impact on Puerto Rico. The government shutdown entails closed nonessential offices, no pay for workers of closed offices, and suspended federal funding of parks, monuments, museums, and other areas deemed nonessential. 14,000...Read More
Author: Christina Gayton
On December 10, 2018, Puerto Rican Governor Ricardo Rosselló enacted a tax reform bill hoping to put money back into the pockets of Puerto Rican citizens for investment and consumption to stimulate the economy. House Bill 1544, now Law No. 257, primarily updates the “Internal Revenue Code for a New Puerto Rico” to simplify the tax code, and reportedly will give Puerto Rican citizens over $2 billion in tax relief over the next five years. Details of these tax changes include a decrease in the corporate tax rate from 39% to 37.5%, a reduced sales tax on prepared foods...Read More
For the second year in a row, the Commonwealth of the Northern Mariana Islands (CNMI) had the fastest growing economy in the US. Although US national GDP only grew by 2.2%, the CNMI boasted a growth rate of a whopping 25% for the 2017 fiscal year. Just the year before, in 2016, the CNMI’s growth rate was 28.6%, while US GDP increased a total of 1.5%. CNMI Governor Ralph Torres (R) describes this consistent, impressive growth as “nothing short of remarkable.” These figures are even more impressive when compared with the territory’s growth rate just 3 years prior: 3.8%...Read More
The Puerto Rican startup PRatian hopes to utilize space technology to make famine a tale of the past. A shining example of social entrepreneurship, by commercializing space technology PRatian believes this technology can disrupt the agriculture sector for the benefit of society. PRatian’s CEO Axel Garcia was employed by and studied at NASA, where he largely worked on how to grow plants in extreme environments. PRatian’s mission, as stated by Garcia in an interview, is “to not only contribute with our journey to enable deep space travel, but also [ improve ] societies’ capability here on Earth.” Although the...Read More
According to the latest report by the Financial Oversight and Management Board for Puerto Rico, the long-term 40 year surplus is projected to ring in at $20 billion-far higher than their forecast on June 29, where they predicted a surplus of $4 billion. This projection is a result of a new plan expecting increased revenue due to cut costs, an influx of disaster aid, consolidated agencies, healthcare reform, and an increased tax revenue. Negotiations are still going on before certifying the new fiscal plan, as the board recently submitted a letter to Governor Ricardo Rosselló on September 19, calling...Read More
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